Insperity Inc (NSP)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	692,873	732,828	575,812	554,846	367,342
Short-term investments	US$ in thousands	135,313	90,031	120,742	82,521	47,946
Total current liabilities	US$ in thousands	1,436,290	1,353,370	1,128,570	904,924	869,045
Cash ratio		0.58	0.61	0.62	0.70	0.48

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($692,873K + $135,313K) ÷ $1,436,290K
= 0.58

The cash ratio of Insperity Inc has ranged from 0.52 to 0.71 over the past five years. The ratio indicates the company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio suggests a stronger ability to pay off current liabilities without relying on external sources.

In 2020, Insperity Inc had the highest cash ratio of 0.71, indicating a significant cash cushion to meet its short-term obligations. This could be due to prudent cash management or increased cash reserves during that year.

In 2019, the company had the lowest cash ratio of 0.52, suggesting a relatively lower level of cash compared to its current liabilities. This could indicate higher reliance on external financing or lower cash reserves during that period.

Overall, the fluctuation in the cash ratio of Insperity Inc over the years may indicate changes in the company's liquidity position and cash management strategies. Further analysis of the company's cash flow and liquidity management practices would provide more insights into its financial health.